TORONTO, Aug. 24,
2022 /CNW/ - TD Asset Management Inc. ("TDAM") today
announced a notional non-cash reinvested distribution (a "Notional
Distribution") for the TD Morningstar ESG U.S. Corporate Bond Index
ETF (the "TD ETF"). A Notional Distribution occurs when a
distribution from the TD ETF is made in the form of units, and then
immediately consolidated with the units held prior to the
distribution, so that the total number of units held after the
distribution is identical to the number of units held prior to the
distribution.
The Notional Distribution has been made to all unitholders of
record of the TD ETF as at June 30,
2022:
Fund
Name
|
Ticker
Symbol
|
Non-Cash
Distribution
Per Unit
|
TD Morningstar ESG U.S.
Corporate Bond Index ETF
|
TMUC
|
0.32246
|
Up until the record date, the TD ETF did not qualify as a mutual
fund trust under the Income Tax Act (Canada) (the "Tax Act") and was considered a
unit trust, as such term is defined under the Tax Act. As at the
record date indicated above, the TD ETF qualified to be a financial
institution, as defined under the Tax Act, for purposes of the
"mark-to-market" rules contained in the Tax Act because one or more
financial institutions held more than 50% of the market value of
the TD ETF.
The Tax Act contains special rules for determining the income of
a financial institution, including, but not limited to, the
realization of all unrealized gains or losses on mark-to-market
property held by the financial institution on income account at the
end of any given tax year. In acknowledging this change of status,
the TD ETF was required to recognize a deemed year-end for tax
purposes and distribute any net income (including unrealized and
realized capital gains as ordinary income) earned by the TD ETF up
until the deemed year-end (reflected by the record date indicated
above).
In early 2023, the tax characteristics of all distributions for
the year 2022 for the TD ETF will be reported to brokers via the
Canadian Depository for Securities (CDS).
For more information regarding the TD ETFs, visit
TDAssetManagement.com.
Commissions, management fees and expenses all may be associated
with investments in exchange- traded funds (ETFs). Please read the
prospectus and summary document(s) before investing. ETFs are not
guaranteed, their values change frequently and past performance may
not be repeated. ETF units are bought and sold at market price on a
stock exchange and brokerage commissions will reduce returns.
The Morningstar® Canada Corporate Bond Sustainability
IndexTM and the Morningstar® US Corporate Bond
Sustainability IndexTM are service marks of Morningstar,
Inc. and have been licensed for use for certain purposes by TD
Asset Management Inc. TD Morningstar ESG U.S Corporate Bond Index
ETF is not sponsored, endorsed, sold or promoted by Morningstar,
and Morningstar makes no representation regarding the advisability
of investing in the TD ETFs.
TD ETFs are managed by TD Asset Management Inc., a wholly-owned
subsidiary of The Toronto-Dominion Bank.
All trademarks are the property of their respective owners.
® The TD logo and other TD trademarks are the property of The
Toronto-Dominion Bank or its subsidiaries.
About TD Asset Management
Inc.
TD Asset Management Inc. ("TDAM"), a member of TD Bank Group, is
a North American investment management firm. TDAM offers investment
solutions to corporations, pension funds, endowments, foundations
and individual investors. Additionally, TDAM manages assets on
behalf of almost 2 million retail investors and offers a broadly
diversified suite of investment solutions including mutual funds,
professionally managed portfolios and corporate class funds. Asset
management businesses at TD manage $398
billion in assets. Aggregate statistics are as of
June 30, 2022, for TDAM and Epoch
Investment Partners, Inc. TDAM operates in Canada and Epoch Investment Partners, Inc.
operates in the United States.
Both entities are affiliates and are wholly-owned subsidiaries of
The Toronto-Dominion Bank.
SOURCE TD Asset Management Inc.